Making money from an App is the target here. To achieve this target of monetization, we have to use the right techniques. As we all know there are a number of free apps available than the paid app. But nowadays records show the truth that free apps make more revenue than the paid app. Here, we have mentioned some of the right ways to make money from an app.
Advertising is the most common revenue-making strategy. It is easy to implement and follows the third-party network. Most of the free app-making companies use advertisements as their major revenue. Making money from advertisements is very easy and involves simple steps. Each hit on the advertising pays the app owner. Advertisements can be displayed as banners, pop-ups, in-app videos, and so on. These advertisements are displayed in the app as extra elements and can be closed if the user doesn’t want to see that. Thus, it pays money if the customer wants, but doesn’t disturb the user.
Subscription is a clever method to show a paid app as a free app. That is the app company provides the option “make a trial and pay”. They don’t charge any price to install initially. After the free trial period is completed, the user has to pay the subscription charges for future usage. This kind of strategy is used in online audio/video streaming, cloud services, and online news portals.
In-App purchase is a revenue model that is very much helpful for the user. If a user has an app, some additional features or premium content/services will be locked. The user has to pay to unlock. This kind of strategy needs a logical payment wall to get the money when the user wants the locked service. It is a popular mode of revenue-making for app companies.
A transaction fee is a very minimal amount that will be paid by the users while ordering a product/service over the app. This seems to be a very small amount, but as each transaction is done a considerable amount is collected as commission for the app owners without heavy investment. So, this is single-time work. If once the payment wall is built in the app, then the app owner can earn money at every transaction.
Selling branded products such as toys, T-shirts, mobile accessories, watches, etc, through the app can make revenue. This follows the concept of Email marketing. The purchased bill will be sent to the user or customer’s email id and it will be stored in the database and can be communicated for further use.
Collecting and selling Data:
The information collected from the user will be saved in the database. At the time of installation, the user’s name, age, mobile number, mail id, and such personal needed information are enquired and collected. This information is being sold to E-commerce websites. Sometimes, survey-related contracts may also require such data. Those data will be sold for such ethical processes by the app company. This makes some revenue to the app owner if it is being sold for ethical usage. Non-ethical usage of such data leads to the criminal offense will be faced in the future by the app company.
Promoting a third-party product or service in the app makes the app owner make money. This strategy is used to promote an affiliate’s product/service. This can be done by displaying in a pop-up or any other form of advertisement. If the user wants the product/service, they can click and make the order. The app owner will get some percentage of profit for each order. Here, the app owner should refer to a qualified product/service to get a decent revenue.
Cost per Install:
App advertised in the free app makes this happen. In a free app, an app owner can advertise another app. If the advertised app is installed or downloaded from the free app, the free app will get revenue. This is Cost per Install. In this also, the app owner should have the knowledge about the most wanted field of the app to be installed by the people.
Crowdfunding is also known as sponsorship is the new ideas shared by startups. Some Startup people have an idea but they may not have enough capital to start. In this case people can go for fundraising. Ventors who are interested in investing in the idea can raise funds for them. Apps which are having a good idea can get sponsorship to transform it into a business. Sponsors may be single or more than one sharing a small portion of the amount.
Free apps can gain or earn money in many ways as discussed above. Free apps can make more revenue than paid apps get. These are some ideas that an app owner can concentrate on. Develop your own mobile application from the best mobile app development company and make money through the app.